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Lanxess Is Buying Chemtura for About $2.7 Billion

September 26, 2016, 4:35 AM UTC
Magnifying glass with logo Lanxess AG.
GERMANY, BONN - APRIL 16: Under the magnifying glass - the logo of the Lanxess AG. (Photo by Ulrich Baumgarrten via Getty Images)
Ulrich Baumgarrten via Getty Images

Lanxess AG (LNXSF) said on Sunday it would buy specialty chemical company Chemtura (CHMT) for about $2.12 billion in cash to improve the German company’s additives business.

Lanxess’s offer of $33.50 for each Chemtura share, represents a premium of about 19% to the Philadelphia-based company’s close on Friday.

The world’s largest synthetic rubber maker will use existing funds and new debt to buy Chemtura in a deal with an enterprise value of about 2.4 billion euros ($2.69 billion), Lanxess said in a statement.

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The boards of both companies have unanimously approved the deal, which is expected to close around mid-2017, Chemtura said in a separate statement.

Lanxess also said it will no longer pursue its earlier-announced share buyback of around 200 million euros.